Cyber insurance covers the losses relating to damage to, or loss of information from, IT systems and networks. The policy, provided by NIG, assists with and management of the incident itself, which can be essential when faced with reputational damage or regulatory enforcement.
As a business, you will rely on information technology (IT) infrastructure to some degree. As a result, you are exposed to the risks of business interruption, income loss, damage management and repair, and possibly reputational damage if IT equipment or systems fail or are interrupted (breached).
A UK Government survey* estimated that in 2015 74% of small to medium sized (SME) organisations suffered a cyber breach. The average cost of a cyber-security breach can be as much as £310,000 for an SME.
While existing insurance policies such as commercial property, business interruption or professional indemnity insurance, may provide some elements of cover against cyber risks, businesses are increasingly buying specialised cyber insurance policies to supplement their existing insurance arrangements, particularly if, like you, they hold: